Does moving to a new state impact your car insurance? Absolutely! When changing your state of residence, your car insurance will inevitably change.
This is because the location where you reside with your vehicle is one of the determining factors for how much you pay and what your coverage options are, as well as what coverage may be legally required. Expect your premiums to change.
Most insurance agents are only licensed to sell in one state. Plus, every state has different requirements regarding car insurance coverage, so switching providers can be a good idea.
Is It Necessary to Change My Car Insurance Provider If I Move?
Many car insurance policies will offer coverage for some driving out of state. However, if you will be moving permanently to another state or for an extended period, it may be wise to change your insurance company if your current car insurance provider does not sell insurance coverage in the state you are moving to.
If you are moving to another address or city within the same state, you will not need to change your provider.
Before you move to a new state, check with your current insurance provider to ascertain if they offer coverage and what the requirements are for insurance coverage in the state you are moving to.
What Will the Impact Be on My Car Insurance if I Move Out of State?
If you move to a new state, you will need to acquire a new auto insurance policy. If your current insurer offers coverage in the state that you are moving to, you can keep the same provider if you so choose. Your current policy will need to be canceled because it’s probable that the new state has different insurance coverage requirements and rules.
A move out of state will also influence your car insurance rates. Premiums are not only influenced by driving history, age, gender, and credit history among other things but are also determined by where you reside.
The number of claims in the area you are moving to can result in higher or lower rates depending on the number of thefts, accidents, vandalism, extreme weather events, etc.
Together with an evaluation of the area of residence, the insurance provider might also consider how often and how far you will be driving daily. If your move shortens your daily commute to work, you may benefit from a lower rate in your new home.
If you have purchased a new home or vehicle in your new state, this can affect your credit rating and, consequently, your monthly premium expense.
Fault to No-Fault States
Moving from a fault state to a no-fault state will probably result in higher monthly premiums, as no-fault states usually will require extra coverage such as:
- PIP – personal injury insurance
- Uninsured and underinsured motorist insurance
- Property damage liability
- Bodily injury for both person and accident
Michigan, Minnesota, Massachusetts, Hawaii, Kansas, Florida, New York, New Jersey, Utah, Kentucky, Pennsylvania, and North Dakota are the 12 no-fault states requiring PIP.
The state you are moving to may also require a different minimum coverage than where you live now. Consider that Alaska can require $50,000 for bodily coverage while Arizona only asks $15,000. That’s a significant difference and will be reflected in premiums. You may want more coverage than the minimum required for peace of mind.
When Will I Need to Notify My Car Insurance Provider that I Will Be Moving?
The sooner, the better when moving. As soon as you are certain of your move, know your move date, and have your new address, call your insurance provider promptly.
If you need to move suddenly, inform your insurance provider immediately.
With relocation, you generally have 90 days to register your vehicle in your new state. Nonetheless, it’s important to have coverage as soon as you cross the state line.
What to Do About Car Insurance When Moving Out of State
Call Your Insurance Company
Your first task will be to call your insurance agent. Your current car insurance company can tell you if they offer insurance coverage in the state you are moving to.
They may also be able to provide information about coverage requirements and costs in the state you are headed to. If you need to change agents or companies, they may also be able to provide referrals.
If your insurance provider offers coverage in your new state, you may be able to continue any discounts and loyalty rewards. It will also save you the hassle of having to change insurance companies. Still, the cost of your coverage may change due to the area, mandatory insurance requirements, and a variety of other considerations.
Check with Your New State’s Department of Motor Vehicles
Visit, phone, or visit the website of your new location’s Department of Motor Vehicles. Look for state requirements for vehicle registration and auto insurance coverage. Most states grant at least a month, and many a full 90 days to complete all the bureaucratic obligations.
You will need to register your vehicle, acquire car insurance coverage, and transition your driver’s license. Failure to do so within the specified period generally results in fines.
Getting a New Policy
You will usually need insurance proof to change your car registry and transition your driver’s license. Experts suggest requesting at least three quotes when shopping. Consider small independent insurance providers in your new state as you may get a better rate.
Once you choose, complete the necessary documents, and make your first premium payment. Get your new policy’s start date in writing.
Vehicle Registration and Driver’s License
With your proof of insurance, proof of residence, and identity you can register your car and get a new license plate. Remember to mail your old license plate to the DMV in your former state of residence. When registering your vehicle, you may also be able to get your new driver’s license.
Cancel Your Old Insurance Policy
Once you have your new policy, you can cancel the old one. Never cancel until you have new coverage in place. Research how to cancel car insurance for your current state ad provider. There may be cancellation fees and they will vary from state to state.
A final consideration is to inform your old insurance company of your new address in the event they want to contact you or maybe send you a refund for unused premiums.